Foreign currency is
A)the bank deposits held by foreigners in Canada.
B)foreign notes and coins that are accepted as a means of payment in Canada.
C)foreign notes, coins and bank deposits.
D)foreign notes, coins, bank deposits, and credit cards.
E)a foreign country's monetary base.

Question

Quizplus · Accepted Answer

Foreign currency encompasses all forms of money from another country that are used in international transactions, including notes (bills), coins, and bank deposits. These are the forms of currency that can be exchanged or used in the financial systems outside their country of origin. Credit cards are not considered a form of currency, but rather a payment method, and the monetary base specifically refers to the total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves, which is a more specific concept than foreign currency in general.

Foreign Currency Is